The PRI Reporting and Assessment

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Lorenzo Saà, Assessment and Training Manager - Principles for Responsible Investment Initiative - United Kingdom.

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  • Lewis Gordon
  • Lewis Gordon
  • SAY TO LOOK AT PRI PRINCIPLE TEXT POSSIBLE ACTIONS ARE LISTED
  • The PRI Reporting and Assessment

    1. 1. Voluntary Guidelines – Greenwashing or Genuine TBLI Mobilization? Lorenzo Saà, Assessment & Training Manager Amsterdam, November 13, 2009
    2. 2. What the PRI is … <ul><li>a global collaborative investor network </li></ul><ul><li>voluntary and aspirational </li></ul><ul><ul><li>grounded in fiduciary duty </li></ul></ul><ul><li>process-oriented principles for integrating ESG issues into mainstream investment practices and across asset classes </li></ul><ul><li>a forum for discussion and concrete action on long-term risk issues and value drivers </li></ul><ul><li>a Secretariat providing practical guidance on emerging ESG issues and implementation support for signatories </li></ul>
    3. 3. ESG-washing risk vs genuine mobilisation? <ul><li>Quantity versus quality dilemma? </li></ul><ul><li>Is it a marketing tool to easily acquire a license to operate and avoid further regulation? </li></ul><ul><li>Information provided to the Secretariat is </li></ul><ul><ul><ul><li>Self-assessed; </li></ul></ul></ul><ul><ul><ul><li>confidential and </li></ul></ul></ul><ul><ul><ul><li>non audited </li></ul></ul></ul><ul><ul><li>So is it useful or distortive? </li></ul></ul>
    4. 4. Advantages of a voluntary initiative… <ul><li>Allows the initiative to reach out to those interested in knowing and implementing ESG aspects along a wide range of ESG experience levels . </li></ul>637 Total 123 Professional service partners 323 Investment managers 191 Asset owners Number of signatories
    5. 5. Advantages of a voluntary initiative… <ul><li>Enables the cooperation among players and sharing of ideas via many of the Secretariat services: more space for best practice sharing . </li></ul><ul><li>The Clearing house via its over 185 actions is an expression of this. </li></ul>
    6. 6. Advantages of a voluntary initiative… <ul><li>As it is Investor-led it provides a tool for the market “ to do their thing ” and leave the space to regulation where it is necessary. </li></ul>
    7. 7. <ul><li>287 signatories responded </li></ul><ul><li>98% of those required to complete survey, after “grace” year. </li></ul><ul><li>100 of the 287 signatories participated in a verification process. </li></ul><ul><li>Five signatories were delisted. </li></ul>Addressing the Challenges: Yearly Assessment Process
    8. 8. Assessment Outputs
    9. 9. Report on Progress, eg. Principle 4 <ul><ul><li>ESG is working its way into contracts but less so into incentives </li></ul></ul>
    10. 10. Report on Progress, eg. Guidance
    11. 11. Individual Responses Published
    12. 12. Assessment Outputs - Confidential Investment Manager X compared to All PRI IMs
    13. 13. Signatory requirements change <ul><ul><li>Scaled mandatory fee by 2011, which will not be higher than today’s maximum voluntary contribution. </li></ul></ul><ul><ul><li>Maintain the Reporting and Assessment questionnaire requirement. This year there was a 98% response rate. </li></ul></ul><ul><ul><li>Minimum set of disclosure requirements by 2011 that: </li></ul></ul><ul><ul><ul><li>Will not be commercial in nature; </li></ul></ul></ul><ul><ul><ul><li>Will not be implementation prescriptive. </li></ul></ul></ul><ul><ul><li>Continue discussion on possibly introducing voluntary assurance mechanisms. </li></ul></ul>
    14. 14. Not alone <ul><li>GRI – voluntary scheme on ESG on the corporate level: over 1,000 companies used GRI. </li></ul><ul><li>CDP – voluntary initiative that contacts over 3,500 corporations on behalf of 475 institutional investors (expecting around 2,000 responses). </li></ul><ul><li>Extractive Industries Transparency Initiative – voluntary and helps fight corruption. </li></ul><ul><li>Pharma Futures….. Etc. </li></ul>
    15. 15. Lewis Gordon <ul><li>In steps </li></ul><ul><li>What we have done </li></ul><ul><li>Looking back from the future </li></ul>
    16. 16. Web: www.unpri.org General inquiries: [email_address] Assessment Specific inquiries : [email_address]

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